Dhaka, Bangladesh (BBN) - Interest rate will go up again from today (Sunday) as the new policy rate will come into effect as per announcement.
Interest rate on money market particularly repo and call money rate will rise in line with the central bank’s new policy rate, market insiders said.
Earlier on October 22, the Bangladesh Bank (BB) increased the policy rate, also known as the repo rate, by 50 basis points to 10 per cent in an effort to combat the higher inflation.
The policy rate hike means banks under liquidity crunch will now have to pay more interest for loans taken from the central bank.
“It would also lead to an increase in interest rates at the customer level. With rising interest rates, spending is expected to decline, which would ultimately reduce inflation,” a senior banker told BBN earlier.
He also said interest rates on both general leading and deposit will enhance further shortly on the basis of the new policy rate.
This was the 11th time since May 2022 the central bank hiked the policy rate to make money expensive for banks and tame demand to curb inflationary pressure on the economy.
BBN/SSR/AD